When it comes to mining, “difficulty” is one of the distinguishing qualities of any cryptocurrency. It climbs as time passes and demand for the coin rises, making it more difficult for latecomers to profit.
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Is Mining Ethereum Profitable?
ETH’s mining difficulty has consistently increased over time, but it has also soared during periods of significant Ethereum buzz, such as during the first altseason or at the start of 2021.
The higher the level of difficulty, the more resources will be required to generate a profit. Mining difficulty, on the other hand, almost always correlates with the asset’s price, ensuring that miners will continue to be enticed to invest their computing power in that particular cryptocurrency.
As a result, while ETH mining currently demands more resources than ever before, it remains extremely profitable; after all, the Ethereum price has been consistently climbing recently, with only tiny corrections before returning to the green.
Challenges to Mining Ethereum
It’s worth noting, though, that the profitability of Ethereum mining is highly dependent on how you mine it and how much you’re willing to spend on both the initial investment and ongoing maintenance.
The Ethereum network’s official website discourages users from starting mining, claiming that due to the changeover, you won’t have enough time to not only make a profit but also break even. However, the switch to the proof-of-stake consensus process has been postponed several times, and there’s no way of knowing when it will truly happen.
In the end, the risk remains: if Ethereum is the only coin you can picture yourself mining, and you have no prior mining expertise, or if you don’t know how to use your hardware after mining, then we do not recommend you start mining ETH right now. There are other ways to put your money to work.
Frequently Asked Questions
What Do Ethereum Mining Rewards Look Like?
The current Ethereum mining reward is 2 ETH plus all transaction and gas fees included in the mined block. The current average profitability of Ethereum mining, according to BitInfoCharts, is 0.09 USD per day for every 1 MH/s.